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I think it's going to hit Google and Amazon's tablet hard...VERY, VERY HARD. Yeah, it will cannibalize a bit of the larger iPad's sales, but it will also help Apple continue to utterly dominate the tablet market...especially in the education market. Apple seems to have a plan toward that end.
If I were Google or Amazon, I'd be most unhappy about the iPad mini. It's going to smash their 7 inch tablet sales into oblivion.